Textiles contribute 2 percent to India’s GDP, and the country ranks as the sixth-largest exporter of textiles globally, contributing 8.21 percent to the country’s total exports in 2023-24. The sector holds a 4.5 percent share in global trade, with the United States and the European Union together accounting for 47 percent of India’s textile and apparel exports. The country is the second-largest producer of cotton, polyester, viscose, and silk, and the fifth-largest producer of technical textiles, with a market size of $22 billion. India aims to triple its textile exports from Rs. 3 lakh crore to Rs. 9 lakh crore by 2030, focusing on enhancing domestic manufacturing and expanding its global reach. This ambitious target was announced by Prime Minister Narendra Modi at the Bharat Tex 2025 event, where he expressed confidence in achieving the goal ahead of schedule, fueled by the current momentum in the sector.
Source: Trade Brain
The Gujarat Chamber of Commerce and Industry (GCCI) organised the Textile Conclave 2025 on March 8, 2025, where experts discussed opportunities in technical textiles and the need for improvement in cotton productivity. Saurin Parikh, chairman of the Textile Task Force of GCCI, talked about the importance of technical textiles in sectors such as healthcare, agriculture, construction and fashion. He stressed the need for collaboration, innovation and policy support to unlock the full potential of this industry. Sandeep Engineer, president of GCCI, said the textile conclave provides a platform for in-depth discussion and deliberation on the needs and issues facing the textile industry. During the panel discussion about technical textiles, experts said there is a need for innovation and R&D to develop high-performance materials and the importance of govt policies and industry collaboration to foster growth.
Source: The Times of India
In terms of tariffs on textiles and clothing, while India imposes a 10.4 per cent tariff on US imports, the tariff for Indian importers in the US is 9 per cent.
Discussions between India and the US to reduce tariffs are in full swing with less than a month left for US President Donald Trump’s reciprocal tariff plan to be implemented. A number of sectors may be impacted if both the countries do not reach a consensus. However, industry experts said that the textiles industry is unlikely to have any major impact because neither of the countries has any differential advantage with regard to tariffs. The textile sector is a significant contributor to India's exports, and higher tariffs could lead to declining demand from US buyers.
Source: Business Standard
India is assessing its import basket to create a customized lower tariff structure for the US, considering sectors like agriculture and automobiles. Negotiations for a bilateral trade agreement are advancing, with an emphasis on reducing tariffs and deepening supply chain integration. Experts urge caution, particularly regarding agriculture and technology-led manufacturing, to protect sensitive sectors. India is examining its import basket to finalise the list of items for which it could build a bespoke — and lower — tariff structure for the US, while it also explores areas where further levy reductions are possible through an extension of the Most Favoured Nation (MFN) approach. The Centre has discussed the minute details of preferential tariff reductions for the US through both a trade pact and on an MFN basis for sectors including agriculture and automobiles — areas that would benefit US.
Source: The Economic Times
US President Donald Trump’s threats to hike tariffs isn’t all bad news for India’s economy since it’s driving the government to lower trade barriers, which will spur competition and growth. That’s the view of Viral Acharya, a former central bank deputy governor, who says greater competition means Indian firms will be forced to raise their standards to take on global rivals. That, in turn, means higher quality jobs and a larger manufacturing base, he said.
Trump has threatened to impose reciprocal tariffs on countries from April 2, effectively raising taxes on imports to the US to the same level that a trading partner imposes on American goods. Economists estimate that India would be one of the worst hit by the reciprocal tariffs given the wide differential of about 10 percentage points in average import duties between the two countries.
India’s government has already taken steps to ease tariffs, making significant cuts in February, and discussing reducing import taxes on US goods ranging from cars to chemicals and electronics.
To minimise the impact on Indian industries, Acharya suggested lowering tariffs in phases with clear communication about the end goal. If the policy path is predictable, businesses will invest in efficiency, innovation, and focus on upskilling their workers, he said.
Source: Business Standard
The European Union's stringent environmental regulations pose significant challenges in the ongoing free trade agreement negotiations with India. Issues such as the Carbon Border Adjustment Mechanism and privacy data protection laws could impose additional costs on Indian exports, despite efforts for exemptions or compensatory measures. The European Union's (EU) aggressive environmental regulations, particularly the carbon tax, deforestation rules, and supply chain due diligence laws are one of the biggest hurdles in the negotiations for a proposed trade pact with India, economic think tank GTRI said on March 9, 2025. It said that these regulations could impose additional costs on Indian exports. Under the Carbon Border Adjustment Mechanism (CBAM), Indian exports of steel, aluminum, and cement to the EU could face tariffs of 20-35 per cent, even if an FTA is signed, the Global Trade Research Initiative (GTRI) said in its report. This raise concerns that while EU goods would enter India duty-free, Indian exports would still face these indirect barriers in Europe, it added.
Source: The Economic Times
India and the European Union will commence their tenth round of negotiations for a proposed free trade agreement in Brussels. Key issues such as agricultural tariffs, auto import duties, and regulatory barriers will be the focus, with hopes to finalize the deal by the end of the year. During the recent visit of EU Commissioner for Trade and Economic Security Maros Sefcovic, the two sides have discussed ways to accelerate efforts towards a balanced and mutually beneficial trade pact. "The two sides are scheduled to hold the tenth round of negotiations for the FTA from March 10-14 in Brussels," an official said. In June 2022, India and the 27-nation EU bloc resumed the negotiations after a gap of over eight years. It stalled in 2013 due to differences over the level of opening up of the markets. The two sides are also negotiating an investment protection agreement and an agreement on Geographical Indications (GIs).
Source: The Economic Times
The DPIIT has requested manufacturing units to submit monthly production statistics from April 2022 to rebase the Index of Industrial Production to 2022-23. India's industrial production growth slowed to 3.2% in December 2024, with manufacturing expected to grow at a reduced rate in FY25. New Delhi: The Department for Promotion of Industry and Internal Trade (DPIIT) has asked manufacturing units to submit the monthly production statistics from April 2022 onwards for the new series of Index of Industrial Production (IIP) as India aims to make its production data more robust by rebasing it to 2022-23. The extant base of the IIP is 2011-12.
Source: The Economic Times
Technology is reshaping traditional industries like textiles, according to Xu Weilin, a deputy to the 14th National People's Congress, speaking on March 6, 2025, during the annual session of China's national legislature.
"There are no obsolete industries, only outdated technologies," Xu said, challenging the idea that traditional industries are declining. The Chinese Academy of Engineering academician and Wuhan Textile University president emphasized textiles' importance in daily life, cultural heritage, fashion and quality of life.
China's textile industry accounts for 4.5% of the country's GDP, produces over 70% of the world's chemical fibers and contributes to one-third of global textile exports, according to industry data. In Hubei province, textiles remain a key economic pillar, with annual revenue nearing 500 billion yuan ($68.96 billion).
Xu emphasized the textile industry's shift from being labor-intensive to technology-driven, expanding beyond clothing into medicine, aerospace and high-tech manufacturing. He cited Wuhan Textile University's breakthroughs, including lead-free radiation protection garments that are one-third the weight of traditional versions while offering better shielding. The university is also developing fiber-woven artificial blood vessels that could transform cardiovascular treatments.
Source: China.org
